By Rebecca Melvin
New York, Sept. 4 - Soitec priced €135 million of five-year convertible bonds in the Oceane structure to yield 6.25%, with an initial conversion premium of 32.5%, according to a syndicate source.
The deal has an over-allotment option for an additional €15 million of bonds, and priced at the tight end of talk, which was 6.25% to 7% for the coupon and 27.5% to 32.5% for the premium.
Pricing occurred Tuesday via Morgan Stanley & Co. International plc.
The initial conversion price is €8.55. The bonds are non-callable for three years, and then provisionally callable at a price hurdle of 30%.
Soitec intends to use proceeds for general corporate purposes to expand its position in silicon-on-insulator (SOI) substrate technology for microprocessors into other applications for engineered substrates.
The bonds, which will not be rated, are expected to be listed on the Euronext Paris market on Sept. 9.
Paris-based Soitec, or S.O.I.TEC, for Silicon On Insulator Technologies, makes SOI wafers for the semiconductor industry.
| Issuer: | Soitec
|
| Issue: | Convertible Oceane bonds
|
| Bookrunner: | Morgan Stanley
|
| Amount: | €135 million
|
| Greenshoe: | €15 million
|
| Maturity: | Sept. 9, 2014
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 32.55%
|
| Conversion price: | €8.55
|
| Price talk: | 6.25%-7%, up 27.5%-32.5%
|
| Pricing date: | Sept. 1
|
| Settlement date: | Sept. 9
|
| Distribution: | Regulation S
|
| Stock symbol: | Euronext Paris: SOI
|
| Stock reference price: | €6.45
|
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